Job evaluation 1.

0 Def: Job evaluation is a systematic process of evaluating different jobs of an organization for determining the relative worth and attaching a value to it. It deals with the jobs only irrespective of persons carrying it out. It is used for fixing the wage rates & salaries. 1.1 Objectives: 1. 2. 3. 4. 5. 6. 7. 8. 1.2 Decides relative values of different jobs Helps formulating uniform wage structure Clarifies responsibility & authority with each job Provides basis for recruitment and training Improves employer employee relationship Adds to job satisfaction minimizes labour turn over Describes and evaluates new jobs

Types: 1. Ranking method 2. Classification method Ranking method: Graded according to the Requirements, Responsibility & Importance Advantages: Simple and fast Easy following Less expensive Classification method: Classified into levels of equal skill, Difficulty, Responsibility, importance etc. Grades A to F Advantages: Simple and easy More accurate Clear distinction Disadvantages: Cumbersome Not suitable for big industries Difficult correlation between present salary & grading Disadvantages: Not accurate Lack of basis Not useful for big organizations 3. Factor comparison method 4. Point method

Factor comparison: Factors: 1. Skill 2. Mental effort 3. Physical effort 4. responsibility 5. physical condition Key jobs are identified and record their wages. Allocate the salary among the 5 factors for each job Advantages: Disadvantages: Wages are fixed by direct comparison Calculated speedily Point method: Divides the jobs into No. of factors and subdivides into grades or degrees. Grades G1 G2 G3 G4 1. Skill Qualifications Experience Judgment & initiative 2. Effort Physical Mental 3. Responsibility Towards materials Towards equipment Towards men 4. Working conditions Exposure to hazards Dust, smoke, fumes, Noise Temperature Glare, radiation Advantages: Accurate and precise Reduces subjective discretion Widely used plan Disadvantages: Needs more work and expensive Points allocated are arbitrary Complicated Error in finding fair wages Subjective judgement

Performance appraisal 2.0 Def: It is a systematic approach to assess the relative worth of an employee working in an organization in terms of job performance, integrity, leadership, intelligence, knowledge, behavior etc. Objectives: 1. Provides a record of the worth of employee and helps in correct placement. 2. Unfolds the limitations of an employee and helps in correction and improvement. 3. Basis for 1. Wage increase 4. Training 2. Promotion 5. Transfer 3. Special assignment 6. discharge Methods: 1. Rating scale 2. Check list 3. Employee comparison

2.1

2.2

Rating Scale: Excellent 1. Standard of output 2. Quality of output 3. Intelligence 4. Job knowledge 5. Leadership 6. Integrity 7. Dependability 8. Qualification & Experience 9. Efforts & Initiative 10. Adaptability 11. Cooperation 12. Judgment 13. Character 14. Loyalty 15. Health 7 personality Check list: A list of questions and statements relating to the employees performance are to be answered. The answers carry marks. The total marks obtained by an employee are considered for rating the employee. Comparison method: 1. Compares the workmen against each other and ranked accordingly. Very good Good Fair Poor

Wages, Incentives, Wage payments 3.0 Wages: Wage is defined as payment made by the employer for the efforts or services put in by the employee. Non-monetary payments are called Fringe benefits. 3.1 Types of wages: 1. Nominal wages 2. Real wages 3. Living wages 4. Fair wages 5. Minimum wages 3.2 Wage payment plans: 1. Time and day rate system. 2. Straight piece work rate system 3. Combination of time rate & Piece rate system 4. Incentives 5. Profit sharing system 6. High wage plan 3.3 Incentives: Incentive is an inducement or reward which is given to a worker for his efficiency and hard work. 3.3.1 Types; 1. Direct 2. Indirect or group 3. Financial 1. Bonus 2. Profit sharing 4. Non- financial 1. Amenities 2. General working conditions 3. Social benefits 5. Semi financial 1. Subsidies 2. PF 3. LTC 4. Medical 3.4 Bonus: As a financial incentive, the employees are paid an additional amount as a certain % of annual income at the end of the financial year called bonus. As per bonus act- 1965, Minimum bonus : 8.33 % Maximum bonus : 20 %

Max. salary limit for eligibility : Rs. 2500 per month 3.5 Wage incentive plans: 1. Straight piece rate Wage earned= No. of pieces x Rate per piece Rate is fixed by determining the standard time for one piece. 2. Straight piece rate with guaranteed minimum wage Minimum wage = Standard output x Piece rate. Wage earned = No. of pieces x rate per piece 3. Taylors differential piece rate system: 1. Workers who exceed standard output are paid higher piece rate. 2. Workers who produce less than std. output are paid lower piece rate. Fresh or inferior workers earn very little amount. Merrik modified this plan. This plan assures a minimum wage. Separate differential piece rates are suggested for workers, who reach up to 70%, 100%, 120% of the std. output. 4. Halsey Plan: 1. A min. base wage is guaranteed. 2. Bonus in terms of certain % of the time saved over the std. time is given to the worker. ( 33.33% for Halsey plan; 50% for Weirs plan ) 3. Output standards are based on previous production records. W= R.T + (p/100).(S-T).R W= wage earned T= Actual time taken in Hrs. R= Hourly wage rate p= % of bonus S= Standard time in Hrs. If p=50% W=R.T+R.(S-T)/2 5. Rowan plan: 1. Minimum base wage 2. Bonus given is (S-T)/S times the actual Time taken. 3. Output standard is based on the previous production records. W= R.T + R.T(S-T)/S

6. Gantt plan: 1. Minimum guaranteed wage 2. Workers reaching output standard get a wage rate increase 3. Workers exceeding O.S. are paid at higher wage rate 4. 20 to 50 % of the time taken will be given as bonus if he completes the job in Std. time or less. 7. Bedaux Plan: 1. Minimum wage is guaranteed 2. B represents unit of work. 1B stands for 1 standard work minute. ( Includes rest time) 3. Bonus is paid for the worker, who earns more than 60Bs /Hr. 4. Bonus is 75% of the No. of Bs above 60 in one hour. W = R.T + R.(75/100)( Ns- Nt)/60. Ns= No. of Bs earned Nt= Std. Bs = 60 X Std. time 8. Emersons Efficiency plan: 1. Base wage is guaranteed 2. Worker having efficiency from 66.67% to 100% earn an incentive from 0-20 % 3. For efficiency more than 100 % , for 1% increase in output, the worker gets 1% increase in incentive. 3.5.1 Group incentive plan: Used where 1. Output of each worker can not be determined 2. The output of one is related with others 3. All workers in a group are equally skilled